Equity Indices Trade Mixed After Similar US Session On Friday

Nov 22 21, 06:22 GMT

General trend

Seeing recirculation of Friday’s report that China Foreign Exchange Committee has called on banks to cap speculation on yuan.
EUR/USD extends drop, USD Index extended rise.
WTI crude pared opening decline.
Only modest moves seen for equity markets thus far.
Travel-sensitive cos. trade generally lower, some have focused on COVID cases in Europe.
Nikkei 225 has pared decline.
Japan markets are closed for holiday on Tues (Nov 23rd).
Hang Seng has remained in the red; TECH index extends decline; Hang Seng announced index changes on Fri.
S&P ASX 200 has traded modestly lower, Financials and Energy indices lag.
US equity FUTs remain higher.
Taiwan Central Bank (CBC) Gov said will move towards tightening in 2022.
Companies due to report earnings during the NY morning include Niu Technologies, Zhihu.

Headlines/Economic Data

Australia/New Zealand

ASX 200 opened 0.0%.
(AU) Australia PM Morrison: Will allow overseas workers, students starting Dec 1st.
(NZ) RBNZ Shadow Board overwhelmingly in favor of raising rates amid surging inflation (Nov 24th will be the next and last meeting for the RBNZ in 2021).
(AU) Australia sells A$300M v A$300M indicated in 1.75% Jun 2051 bonds, Avg Yield: 2.4794% v 2.3718% prior, bid to cover 1.94x v 3.52x prior.

Japan

Nikkei 225 opened -0.4%.
(JP) Japan PM Kishida and EC President Michel making plans to meet in Japan on Nov 29th – Japan press.
(JP) Japan Chief Cabinet Sec Matsuno: No plan on releasing oil reserves yet, but under consideration; Will continue to pay attention to global energy market trends and impact on the Japanese economy.

Korea

Kospi opened +0.4%.
(KR) South Korea Nov 1-20 Exports y/y: 27.6% v 36.1% prior; Imports y/y: 41.9% v 48.0% prior; Chip Exports y/y: 32.5% v 23.9% prior.
(KR) Bank of Korea sells KRW820B v 700B indicated in 3-month Monetary Stabilization Bonds (MSB): avg yield 0.90% v 0.99% prior.
(KR) South Korea main opposition People Power Party (PPP) presidential candidate Yoon and ruling Democratic Party (DP) candidate Lee are nearly tied in polling ahead of elections next year – Yonhap.

China/Hong Kong

Hang Seng opened 0.0%; Shanghai Composite opened +0.1%.
(CN) CHINA PBOC MONTHLY LOAN PRIME RATE (LPR) SETTING: LEAVES BOTH 1-YEAR AND 5-YEAR RATES UNCHANGED (19th consecutive month of steady rates).
(HK) MSCI to track NetEase and JD.com via their Hong Kong shares rather than their ADRs in the US, may be the start of a gradual shift in liquidity away from the US for China stocks – press.
(CN) Owners of China developers said to have used at least $3.8B in personal funds to save their companies from default – press.
388.HK To reduce the minimum market capitalization requirement for secondary listings of Chinese companies without dual voting rights structures.
(CN) Golden Credit rating analyst says Yuan FX rate expected to remain strong toward the end of 2021 [in line]; notes Chinese exports – Chinese press.
(CN) China PBOC Open Market Operation (OMO): Injects CNY50B in 7-day reverse repos v CNY50B prior; Net inject CNY40B v Net drain CNY50B prior.
(CN) China PBOC sets Yuan reference rate: 6.3952 v 6.3825 prior.
(CN) China President Xi: A China ASEAN summit will help regional peace, development and stability; ASEAN has gotten rid of shadow of a cold war and maintained regional stability.

Other

(TW) Taiwan Central Bank: Will not use interest rates to rein in housing market costs.
(TW) Taiwan Econ Min Wang: US-Taiwan economic dialogue will be on the supply chain and 5G Tech.

North America

Europe

TIT.IT KKR expected to make a €5.50/shr cash offer, €10.8B – press.
(UK) BOE Gov Bailey: it’s not the bank’s job to fix supply chain issues hampering economies around the world which cause inflation to rise.
(NL) Netherlands Oct House Price Index M/M: 1.0% v 1.6% prior; Y/Y: 18.3% v 18.5% prior.
(RU) Ukraine Defense Intelligence Agency chief Budanov: Russian troops prepare to attack Ukraine by end-Jan 2022 or early Feb 2022.

Levels as of 00:15ET

Hang Seng -0.6%; Shanghai Composite +0.6%; Kospi +1.2%; Nikkei225 +0.1%; ASX 200 -0.5%.
Equity Futures: S&P500 +0.3%; Nasdaq100 +0.2%, Dax +0.3%; FTSE100 +0.3%.
EUR 1.1292-1.1265; JPY 114.21-113.93; AUD 0.7256-0.7228; NZD 0.7010-0.6983.
Commodity Futures: Gold -0.2% at $1,848/oz; Crude Oil -0.1% at $75.90/brl; Copper -0.7% at $4.37/lb.